Report - Islamic Microfinance Workshop, Yemen

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Report on Two Days Specialized
Training Workshop on Islamic
Microfinance
16th & 17th September, 2012 in Sheba Hotel, Sana’a, Yemen

Jointly Organized by:

AlHuda Centre of Excellence in Islamic Microfinance Yemen Microfinance Network

Supported by:

Prepared by:
Ali Abutaleb – Yemen Microfinance Network

Sanya Ali Ahmad – AlHuda Centre of Islamic Banking and Economics
INDEX

Contents Page no.
Introduction 3
About the Organizing Parties 3
Speakers of the Workshop 4
Participants of the Workshop 5
Training Workshop Agenda 6
Synopsis of the Training 7
Impact Analysis of the Training Workshop 9
Participants’ Overall Evaluation of the Workshop 10
Suggestions and Recommendations 11

2
INTRODUCTION
Overall, social and economic circumstances in Yemen create a homogenous traditional
society where many decisions are influenced by the religious considerations. So, Islamic
Microfinance would be highly accepted there and would ultimately help in reducing
poverty of Yemen.

Islamic Microfinance is an emerging market in the field of Islamic finance. So, there is an
immediate need to educate, train and conduct market study and awareness campaigns on
this subject. The aim of this training is to provide edification and trainings to Microfinance
& Finance Professional with an additional opportunity for their educational uplift under
Islamic financial system. An individual would be able to learn new techniques and
opportunities in this field.

The event was jointly organized by the Yemen Microfinance Network and AlHuda Center of
Islamic Banking and Economics - Pakistan. The training was lead by international experts
and was open to participants from regional and international countries as well as local MFI
and commercial bank practitioners.

ABOUT THE ORGANIZING PARTIES
About AlHuda Centre of Islamic Banking and Economics (CIBE)

AlHuda Center of Islamic Banking and Economics (AlHuda CIBE) is a well established name
in Islamic financial Market which is working in the field of Islamic Banking and Economics
from the last 7 years in Pakistan and around the globe. It is the pioneer organization to
start effort for the promotion of Islamic Banking and Finance in masses through Advisory
and Consultancy, Education, Trainings, Awareness, Product Development and Publications.

About Yemen Microfinance Network (YMN)

The Yemen Microfinance Network (YMN) is a member based association registered in 31st
August 2009 under the Ministry of Social Affairs and Labor as a non-governmental
organization (NGO), having its own board of directors consisting of the microfinance
member institutions. Being a member-driven association, YMN three year strategy was
developed in a very detailed, comprehensive and systematic process.

3
SPEAKERS OF THE WORKSHOP
The master trainers and speakers of the training were: Mr. Qazi Abdul Samad and Mr.
Zubair Mughal. The profile of the speakers is as follows:

Qazi Abdul Samad

Qazi Abdul Samad is a skilled professional with proficiency in Shari’ah advisory, In-depth
knowledge of Shari’ah Microfinance, Innovative, commitment & pro-active approach to
work, Strong communications & analytical skills and able to manage and train others.
Currently, he is working as a Shari’ah Advisor of The Bank of Khyber - Pakistan. He is also a
visiting lecturer of Islamic Financial System in Management Science Department of City
University, Peshawar. He has been providing Shari’ah advisory and supervision in many
organizations. He is an author of many articles and has presented articles in many
International conferences.

Muhammad Zubair Mughal

Muhammad Zubair Mughal is a passionate and hardworking individual with a strategic
vision in Islamic Micro Finance. He is a skilled Islamic financial professional and a keen
learner of Islamic Microfinance and Islamic Micro insurance with good public speaking and
training skills. He is currently working as a Chief Executive Officer of AlHuda centre of
Islamic Banking and Economics. He has a professional experience Islamic Microfinance of
over 10 years. He has development Many Islamic Microfinance Products which are being
utilized in Pakistan, Middles East & Africa, he has also presented his research papers on
Islamic Microfinance in many International conferences in South Africa, China, Kazakhstan,
Russia, Kenya, Pakistan, U.A.E, Mauritius, Afghanistan, Turkey, Tatarstan, Jordan and Iraq
etc.

4
PARTICIPANTS OF THE WORKSHOP
Yemen is an emerging market in terms of Islamic Microfinance. It has a rich Islamic history
and the demand of Islamic Microfinance is growing very rapidly there. Yemen has a
population size of 23 Million, one of the most
ethnically homogenous in the region, with 3%
population annual growth rate. 71% of the population
lives in the rural and 29% in urban areas. 34.8% live
below the poverty line. Overall, social and economic
circumstances in Yemen create a homogenous
traditional society where many decisions are
influenced by the religious considerations. So, Islamic
Microfinance would be highly accepted there and

would ultimately help in reducing poverty of Yemen. A Memorable Group Photo of all the Participants

The targeted audience for this training workshop was
Microfinance Professionals and Experts, Microfinance Institutions & Banks, Financial & Banking
Institutions, Rural & Agri. financial Professional, Community Developments, NGOs and NPOs,
Insurance Companies, Development Consultant, Management Consultants, Social Development
Sector, Govt. Development Departments, Local and International Donor's Agencies, SMEs &
Corporative Societies, Academia, Philanthropists and Investors, Regulators and Govt. Officials,
Shari'ah Scholars and Experts.

In this connection, the persons, who has participated the training workshop are:

No. Name Organization
1 Ms. Faiza Abdo Saeed Economic Opportunities Fund
2 Mr. Jihad Al-Hakimi Economic Opportunities Fund
3 Ms. Nasaim Mohammed Algonaid Alawael Microfinance Company
4 Ms. Somaia Ezzadin Alawael Microfinance Company
5 Ms. Nagwa Fadil Aden Microfinance Foundation
6 Ms. Hind Kassim Alawi Ali Social Fund For Development
7 Mr. Omer Abdul Haleem Social Fund For Development
8 Mr. Fahmi Al-Kuraimi Alkuraimi Islamic Microfinance Bank
9 Mr. Ahmed Alhumiqani Yemen Microfinance Network
10 Mr. Khalil Almikhlafi Yemen Microfinance Network
11 Mr. Abdulrahman Alazazi Yemen Microfinance Network
12 Mr. Nabil Ali Al-Shehaly Alamal Microfinance Bank
13 Mr. Hani Al Fakih National Microfinance Foundation
14 Mr. Mutlaq Al-Osaimi National Microfinance Foundation
15 Mr. Moammar Shuhait National Microfinance Foundation
16 Mr. Ali Abutaleb Yemen Microfinance Network

5
TRAINING WORKSHOP AGENDA

The agenda of the training workshop is as follows:

Mr. Mohammed Saleh Al-Lai,
Chairman
Yemen Microfinance Network
Mr. Osma Al Shami
Welcome Address Head of SMED
and Inauguration Social Fund for Development - Yemen
Najah Almugahed,
Acting Managing Director
Yemen Microfinance Network

 A Glance on Islamic Finance
 Economic Rationale for Prohibition of Riba
 Shari’ah Foundation and Applications of Islamic Microfinance
 Islamic Micro Finance as an effective tool of poverty alleviation
 Islamic Micro Financial Products Mechanisms & Compatibility with
Conventional Microfinance Products
 Source of Islamic Microfinance Products
 Islamic Microfinance Institutions – Worldwide
 Need Assessment of Islamic Microfinance
Topics Discussed by  Opportunities & Challenges Faced by IMF Sector
the Speakers:  A Case study from Pakistan
 Islamic Microfinance Product Mechanism, Structures, Operations &
Mr. Qazi Abdul Samad Applications.
&  Partnership Modes of Islamic Microfinance
Mr. Muhammad Zubair  Liability (Deposit) Management Techniques for Islamic
Mughal Microfinance
 Trade Based Modes of Islamic Microfinance
 Parallel Salam & Istisna
 Islamic Microfinance Product Mechanism, Structures, Operations &
Applications
 Micro Takaful (Islamic Micro Insurance)
 Definition of Takaful. How Micro Takaful products works with
Islamic Microfinance
 Structure, Operation and Performance of Takaful for Poverty
Alleviation
 Opportunities and Challenges of Micro Takaful in Islamic
Microfinance
 Definitions, Concept & Uses of Waqf, Qarz-e-Hassan, Cooperatives
& Zakat in Islamic Microfinance system

6
SYNOPSIS OF THE TRAINING
The training session was inaugurated by Mr. Mohammed Saleh Al-Lai, Mr. Osma Al Shami
Najah Almugahed. While addressing to the audience of training workshop, Mr. Mohammed
Al Lai said: “I am so proud to be a member of YMN as a Chairma n. I have had the privilege
of working with dedicated and
talented employees who make our
Network an innovative and
successful institution. It gives me
immense pleasure to present the
Islamic Microfinance and Islamic
Finance training workshop that is
held with cooperation of (AlHuda-
CIBE) Center of Islamic Banking &
Economics of Pakistan. It is clear
that the demand for Islamic
finance has increased which is a
major opportunity for the growth
Mr. Mohammed Saleh Al-Lai Chairmen Yemen Microfinance
Network speaking at Inaugural Session of the industry and gets awareness
about it from highly learned and
experienced professionals and be the leaders of Islamic Microfinance in Arab region.
Therefore we are keen in promoting the awareness of Islamic Microfinance among the
region. More than ever, we extend our best wishes for the success of the training and the
ultimate benefit for all the Yemenis from the
wide spreading Microfinance Industry.”

Mr. Mr. Osma Al Shami presented his views by
saying that it is an excellent opportunity to
spread the knowledge and awareness about
Islamic Microfinance in Yemen that will
ultimately benefit the masses. He said that the
training workshop will provide a lot of
opportunities to gain knowledge about global
practices on Islamic microfinance through
learned national and international scholars
and experts. Ms. Najah Almugahed Technical Session of the Training

appreciated the arrangement of two days
workshop on Islamic Microfinance, a good step for the Microfinance sector. She said that
Islamic Microfinance is rapidly growing in Yemen and the workshop like this will provide
more awareness about it.

7
Two days training went too smoothly. All the participants went satisfied. At the end of the
training session, Mr. Zubair Mughal presented the souvenir to Ms. Najah Almugahed for
initiating this step with AlHuda CIBE. YMN
showed its wish to repeat this training
workshop on annual basis.

At the end of the training, logo inauguration
ceremony of Islamic Microfinance was
conducted in which Logo of the forum was
inaugurated by Ms. Najah Almugahed. While
addressing to the inaugural ceremony, Ms.
Najah Almugahed appreciated the step of
AlHuda CIBE to organize Global Islamic
Microfinance Forum and said that the
Mr. Zubair Mughal presenting Souvenir to Ms.
microfinance industry would be more established Najah Almugahed
through this Forum. While addressing to the
inaugural ceremony, Chairman of Yemen Microfinance Network - Mr. Al-Lai has declared
the strategy of AlHuda CIBE for the promotion of Islamic Microfinance as a very good step
for the industry which will amplify the awareness and promotion of Islamic Microfinance.

8
IMPACT ANALYSIS OF THE TRAINING WORKSHOP
As Islamic Microfinance is already a distinguished and strong field in Yemen so this training
workshop has added new horizons and dimensions in this field. The basic aim was to see
how the integration can be made in between the existing products of Islamic Microfinance
in Yemen and other related products. It was indeed a learning session. It will surely create
product understanding and the participants would share the knowledge gained through
this session which will help in uplifting of their living standards and would help in reducing
poverty of Yemen.

It will surely enhance the expertise of
working in this field and would increase
the capabilities and capacities to work for
it. The attendees of this training gained In-
depth Knowledge of Islamic Microfinance,
learnt new Techniques of Poverty
Alleviation, Social Development &
Financial Inclusion through Islamic
Microfinance. They saw the Shari’ah
Principles and Mechanism about Islamic
Microfinance and got an Opportunity to
gain knowledge about global practices on
Islamic microfinance through learned Participants during the training Session
national and international scholars and
experts. The event should have a strong impact on the outreach of Islamic Microfinance in
Yemen and the region as an effective tool to alleviate poverty.

Success Indicators of the training
 The positive evaluation results by participants
 Positive perception of the event by organizations related to microfinance industry in
Yemen.
 The level of attendance and interaction
 Provision of real life case studies and examples
 The included literature and reading material
 The high levels of trainees’ interactivity with trainers
 Very well organized event
 The event venue
 Positive atmosphere throughout the event

9
Obstacles & Challenges
 The relatively short available time for the workshop, which meant that high loads of
information and rich material had to be squeezed to fit the time frame
 The security situation especially because of the attacks on the US Embassy in Sana’a
by demonstrators before the workshop’s date prevented other international
participants from travelling to Sana’a to attend the event.
 The fact that most MFIs in Yemen are utilizing one or two types of IMF products but
mostly (Murabaha)

PARTICIPANTS’ OVERALL EVALUATION OF THE WORKSHOP
Participants of the training workshop liked the training and the feedback was very positive
and encouraging. Participants’ overall evaluation for the training workshop is summarized
as a chart positioned below:

Training package

Content and integration of…

Organization

Training hall

Timing Weak

Coffee break and Lunch Acceptable
Average
Cleanliness
Good
Relationship with colleagues
Excellent
Reflection on current job

Training methods

Willingness to attend similar…

Overall course evaluation

0.00% 20.00% 40.00% 60.00% 80.00%100.00%

10
SUGGESTIONS AND RECOMMENDATIONS
For the betterment of the next training workshop, following suggestions and
recommendations are to be taken under consideration:

 To organize similar but longer training workshops and target larger potential
segment of participants from different organizations, practitioners, and funding
donors.
 To better coordinate with the governmental bodies, i.e. (Central Bank of Yemen) to
better publicize the event and build awareness of IMF products and solutions.